LIC’s Bima Ratna (UIN: 512N345V01)
(A Non-Linked, Non-Participating, Individual,
Savings, Life Insurance Plan)
LIC’s Bima Ratna is a Non-Linked, Non-Participating, Individual, Savings, Life
Insurance Plan which offers a combination of protection and savings. This plan
provides financial support for the family in case of unfortunate death of the
policyholder during the policy term and also provides for periodical payments
on survival of the policyholder at specified durations to meet the various
financial needs. This plan takes care of liquidity needs through loan facility.
This product can be currently purchased through Corporate Agents, Insurance
Marketing Firms (IMF), Brokers, CPSC-SPV and POSP-LI engaged by these
intermediaries viz. Corporate Agents, Insurance Marketing Firms (IMF) and Brokers.
- Benefits payable under an in-force policy :
A) Death Benefit:
Death Benefit payable on death of Life Assured during the policy term after
the date of commencement of risk shall be “Sum Assured on Death” along
with Accrued Guaranteed Additions.
Where “Sum Assured on Death” is defined as the higher of 125% of Basic
Sum Assured or 7 times of annualized premium.
This Death Benefit payment shall not be less than 105% of total premiums
paid (excluding any extra premium, any rider premium (s) and taxes) upto
date of death.
However, in case of minor Life Assured, whose age at entry is below 8 years,
on death before the commencement of Risk (as specified in Para 2 below),
the Death Benefit payable shall be refund of premium(s) paid (excluding
taxes, any extra premium and rider premium(s), if any), without interest.
B) Survival Benefit:
On the life assured surviving to each of the specified duration during the policy
term, provided policy is in-force, a fixed percentage of Basic Sum Assured shall be
payable. The fixed percentage for various policy terms is as below:
Policy Term (in years) Payment of Survival Benefit
15 25% of the Basic Sum Assured at the end
of each of 13th and 14th policy year.
20 25% of the Basic Sum Assured at the end
of each of 18th and 19th policy year.
25 25% of the Basic Sum Assured at the end
of each of 23rd and 24th policy year.
C) Maturity Benefit:
On Life Assured surviving the stipulated Date of Maturity provided the
policy is in-force, “Sum Assured on Maturity” along with accrued Guaranteed
Additions, shall be payable. Where “Sum Assured on Maturity” is equal to
50% of Basic Sum Assured.
D) Guaranteed Additions:
Provided the policy is in-force, Guaranteed Additions shall accrue at the end
of the each Policy Year at the rate as specified below:
Policy Year Guaranteed Additions (per Rs 1000 Basic
Sum Assured)
From 1st to 5th Rs 50
From 6th to 10th Rs 55
From 11th to 25th Rs 60
In case of death under an in-force policy, the Guaranteed Addition in the
year of death shall be for full policy year.
If the premiums are not duly paid, the Guaranteed Additions shall cease to
accrue under a policy.
In case of a paid-up policy or on surrender of a policy, the Guaranteed
Addition for the policy year in which the last premium is received will be
added on proportionate basis in proportion to the premium received for
that year. - Eligibility Conditions and Other Restrictions:
a) Minimum Basic Sum
Assured
: Rs. 5,00,000
b) Maximum Basic Sum
Assured
(Basic Sum Assured shall
be in multiples of
: No limit
Rs 25,000/- )
c) Policy Term : 15 years, 20 years and 25 years
: 15 & 20 years (in case of policies
procured through POSP-LI/CPSC- SPV)
d) Premium Paying Term : 11 years for Policy Term 15 years
: 16 years for Policy Term 20 years
: 21 years for Policy Term 25 years
e) Minimum Age at entry : 5 years (Completed) for Policy Term
15 years
: 90 days (Completed) for Policy Term
20 & 25 years
f) Maximum Age at Entry : 55 years (Age Nearer Birthday) for Policy
Term 15 years
: 50 years (Age Nearer Birthday) for Policy
Term 20 years
: 45 years (Age Nearer Birthday) for Policy
Term 25 years
: 65 years (Age Nearer Birthday) minus Policy
Term (in case of policies procured through
POSP-LI/CPSC-SPV )
g) Minimum Age at
Maturity
: 20 years (Completed) for Policy Term
15 & 20 years
: 25 years (Completed) for Policy Term
25 years
h) Maximum Age at
Maturity
: 70 years (Age Nearer Birthday)
: (65 years (Age Nearer Birthday) in case of
policies procured through POSP-LI/CPSC-SPV)
Date of commencement of risk:
In case, the age at entry of the Life Assured is less than 8 years, the risk
under this plan will commence either 2 years from the date of
commencement or from the policy anniversary coinciding with or
immediately following the attainment of 8 years of age, whichever is earlier.
For those aged 8 years or more, risk will commence immediately.
Date of vesting :
If the policy is issued on the life of a minor, the policy shall automatically vest
on the Life Assured on the policy anniversary coinciding with or immediately
following the completion of 18 years of age and shall on such vesting be
deemed to be a contract between the Corporation and the Life Assured. - Optional Benefits:
I. Rider Benefit:
The following five optional riders shall be available under this plan by
payment of additional premium. However, the policyholder can opt
between either of the LIC’s Accidental Death and Disability Benefit Rider
or LIC’s Accident Benefit Rider and/or the remaining three riders subject to
the eligibility as detailed below.
a) LIC’s Accidental Death and Disability Benefit Rider (UIN: 512B209V02)
This rider can be opted for under an in-force policy at any time within
the premium paying term of the Base plan provided the outstanding
premium paying term of the Base plan as well as the Rider is atleast 5
years. If this rider is opted for, in case of accidental death, the Accident
Benefit Sum Assured will be payable in lumpsum along with the death
benefit under the base plan. In case of accidental disability arising due
to accident (within 180 days from the date of accident), an amount equal
to the Accident Benefit Sum Assured will be paid in equal monthly
instalments spread over 10 years and future premiums for Accident
Benefit Sum Assured as well as premiums for the portion of Basic Sum
Assured under the Base Policy which is equal to Accident Benefit Sum
Assured under the policy, shall be waived. Under the policy on the life
of minors, this rider will be available from the policy anniversary
following completion of age 18 years on receipt ofspecific request.
b) LIC’s Accident Benefit Rider (UIN:512B203V03)
This rider can be opted for at any time under an in-force policy within
the premium paying term of the Base plan provided the outstanding
premium paying term of the Base plan as well as the Rider is atleast
5 years. The benefit cover under this rider shall be available only during
the premium paying term. If this rider is opted for, in case of accidental
death, the Accident Benefit Sum Assured will be payable in lumpsum
along with the death benefit under the base plan.
c) LIC’s New Term Assurance Rider (UIN: 512B210V01)
This rider is available at inception of the policy only. The benefit cover
under this rider shall be available during the policy term. If this rider
is opted for, an amount equal to Term Assurance Rider Sum Assured shall
be payable on death of the Life Assured during the policy term.
d) LIC’s New Critical Illness Benefit Rider (UIN: 512A212V02)
This rider is available at the inception of the policy only. The cover under
this rider shall be available during the policy term. If this rider is opted
for, on first diagnosis of any one of the specified 15 Critical Illnesses
covered under this rider, the Critical Illness Sum Assured shall be payable.
e) LIC’s Premium Waiver Benefit Rider (UIN: 512B204V03)
Under an in-force policy, this rider can be opted for on the life of Proposer
of the policy, at any time coinciding with the policy anniversary but
within the premium paying term of the Base Policy provided the
outstanding premium paying term of the Base Policy and the rider is at
least five years. Further, this rider shall be allowed under the policy
wherein the Life Assured is Minor at the time of opting this rider. The
Rider term shall be outstanding premium paying term of the base plan
as on date of opting this rider or (25 minus age of the minor Life Assured
at the time of opting this rider), whichever is lower. If the rider term plus
proposer’s age is more than 70 years, the rider shall not be allowed.
If this rider is opted for, on death of proposer, payment of premiums in
respect of base policy falling due on and after the date of death till the
expiry of rider term shall be waived. However, in such case, if the premium
paying term of the base policy exceeds the rider term, all the further
premiums due under the base policy from the date of expiry of this
Premium Waiver Benefit Rider term shall be payable by the Life Assured. On
non-payment of such premiums the policy would become paid-up.
The premium for LIC’s Accident Benefit Rider or LIC’s Accidental Death and
Disability Benefit Rider and LIC’s New Critical Illness Benefit Rider as
applicable shall not exceed 100% of premium under the base plan and the
premiums under all other life insurance riders put together shall not exceed
30% of premiums under the base plan.
Each of above Rider Sum Assured cannot exceed the Sum Assured on Death
under the Base plan.
For more details on the above riders, refer to the rider brochure or contact
LIC’s nearest Branch Office.
No rider shall be available in case of the policies procured through POSP-LI /
CPSC-SPV.
II. Settlement Option (for Maturity Benefit):
Settlement Option is an option to receive Maturity Benefit in instalments
over a period of 5 years instead of lump sum amount under an in-force
as well as Paid-up policy. This option can be exercised by the Policyholder
during minority of the Life Assured or by the Life Assured aged 18 years and
above, for full or part of the maturity proceeds payable under the policy.
The amount opted for this option by thePolicyholder/ Life Assured (i.e. Net
Claim Amount) can be either in absolute value or as a percentage of the
total claim proceeds payable.
The instalments shall be paid in advance at yearly or half-yearly or quarterly
or monthly intervals, as opted for, subject to minimum instalment amount
for different modes of payments being as under as under:
Mode of Instalment payment Minimum instalment amount
Monthly Rs. 5,000/-
Quarterly Rs. 15,000/-
Half-Yearly Rs. 25,000/-
Yearly Rs. 50,000/-
If the net claim amount is less than the required amount to provide the
minimum instalment amount as per the option exercised by the
Policyholder/Life Assured, the claim proceed shall be paid in lump sum only.
For all the instalment payment options commencing during the 12 months’
period from 1st May to 30th April, the interest rate used to arrive at the
amount of each instalment shall be annual effective rate not lower than 5
year Semi annual G-Sec rate minus 2%; where, the 5 year G-Sec rate shall be
as at last trading day of previous financial year.
Accordingly, for the 12 months’ period commencing from 1st May, 2021 to
30th April, 2022, the applicable interest rate for the calculation of the
instalment amount shall be 3.96% p.a. effective.
For exercising the settlement option against Maturity Benefit, the
Policyholder /Life Assured shall be required to exercise option for payment
of net claim amount in instalments at least 3 months before the due date of
maturity.
The first payment will be made on the date of maturity and thereafter,
based on the mode of instalment payment opted for by the policyholder,
every month or three months or six months or annually from
the date of maturity, as the case may be.
After the commencement of Instalment payments under Settlement
Option against Maturity Benefit:
a) If a Life Assured, who has exercised Settlement Option against Maturity
Benefit, desires to withdraw this option and commute the outstanding
instalments, the same shall be allowed on receipt of written request
from the Life Assured. In such case, the lumpsum amount, which is
higher of the following shall be paid and the policy shall terminate.
- discounted value of all the future instalments due; or
- (the original amount for which settlement option was exercised) less
(sum of total instalments already paid);
b) The applicable interest rate that will be used to discount the future
instalment payments shall be annual effective rate not exceeding 5 year
Semi-annual G-Sec rate; where, the 5 year Semi-annual G-Sec rate shall
be as at last trading day of previous financial year during which
Settlement Option was commenced.
Accordingly, for the 12 months’ period commencing from 1st May, 2021
to 30th April, 2022, the maximum applicable interest rate used for
discounting the future instalments shall be 5.96% p.a. effective.
c) After the Date of Maturity, in case of death of the Life Assured, who
has exercised Settlement Option, the outstanding instalments will
continue to be paid to the nominee as per the option exercised by the
Life Assured and no alteration whatsoever shall be allowed to be made
by the nominee.
III. Option to take Death Benefit in instalments:
This is an option to receive Death Benefit in instalments over a chosen
period of 5 years instead of lump sum amount under an in-force as well as
paid-up policy. This option can be exercised by the Policyholder during
minority of the Life Assured or by Life Assured aged 18 years and above,
during his/her life time; for full or part of the Death benefits payable under
the policy. The amount opted by the Policyholder/Life Assured (i.e. Net
Claim Amount) can be either in absolute value or as a percentage of the
total claim proceeds payable.
The instalments shall be paid in advance at yearly or half-yearly or quarterly
or monthly intervals, as opted for, subject to minimum instalment amount
for different modes of payments being as under:
Mode of Instalment payment Minimum instalment amount
Monthly Rs. 5,000/-
Quarterly Rs. 15,000/-
Half-Yearly Rs. 25,000/-
Yearly Rs. 50,000/-
If the net claim amount is less than the required amount to provide the
minimum instalment amount as per the option exercised by the Policyholder
/Life Assured, the claim proceed shall be paid in lump sum only.
For all the instalment payment options commencing during the 12 months’
period from 1st May to 30th April, the interest rate used to arrive at the
amount of each instalment shall be annual effective rate not lower than the
5 year semi-annual G-Sec rate minus 2%; where, the 5 year G-Sec rate shall
be as at last trading day of previous financial year.
Accordingly, for the 12 months’ period commencing from 1st May, 2021 to
30th April, 2022, the applicable interest rate for the calculation of the
instalment amount shall be 3.96% p.a. effective.
For exercising option to take Death Benefit in instalments, the Policyholder
during minority of the Life Assured or the Life Assured, if major, can exercise
this option during his/her lifetime while in currency of the policy, specifying
the period of Instalment payment and net claim amount for which the
option is to be exercised. The death claim amount shall then be paid to the
nominee as per the option exercised by the Policyholder/Life Assured and
no alteration whatsoever shall be allowed to be made by the nominee.
- Payment of Premiums :
Premiums can be paid regularly at yearly, half-yearly, quarterly or monthly
intervals (monthly premiums through NACH only) or through salary
deductions. - Grace Period :
A grace period of 30 days shall be allowed for payment of yearly or halfyearly or quarterly premiums and 15 days for monthly premiums from the
date of First Unpaid Premium. During this period, the policy shall be
considered in-force with the risk cover without any interruption as per the
terms of the policy. If the premium is not paid before the expiry of the days
of grace, the Policy lapses.
The above grace period will also apply to rider premiums which are payable
along with premium for Base Policy. - Sample Illustrative Premium:
The sample illustrative annual premiums for Basic Sum Assured of Rs. 20
lakhs for Standard lives are as under:
(Amount in Rs)
Age (Nearer
Birthday)
Annual Premium
Policy Term (Premium Paying Term)
15(11) 20(16) 25(21)
20 2,16,040 1,51,066 1,14,218
30 2,16,824 1,52,340 1,16,178
40 2,20,744 1,57,534 1,22,940
50 2,32,602 1,71,548 –
The above premiums are exclusive of taxes. - Rebates:
Mode Rebate
Mode Rebate
Yearly mode 2% of Tabular Premium
Half-yearly mode 1% of Tabular premium
Quarterly, Monthly (NACH) &
Salary deduction
NIL
High Sum Assured Rebate
Basic Sum Assured (BSA) Rebate on tabular premium per
Rs 1000 BSA (Rs.)
5,00,000 to 9,75,000 Nil
10,00,000 to 14,75,000 0.50
15,00,000 to 19,75,000 1.00
20,00,000 and above 1.25 - Revival:
If the premiums are not paid within the grace period, then the policy will
lapse. A lapsed policy can be revived, but within a period of 5 consecutive
years from the date of First Unpaid Premium but before the date of maturity.
The revival shall be effected on payment of all the arrears of premium(s)
together with interest (compounding half-yearly) at such rate as may be
fixed by the Corporation from time to time and on satisfaction of Continued
Insurability of the Life Assured and/or Proposer (if LIC’s Premium Waiver
Benefit Rider is opted for) on the basis of information, documents and
reports that are already available and any additional information in this
regard if and as may be required in accordance with the Underwriting Policy
of the Corporation at the time of revival, being furnished by the Policyholder/
Life Assured/Proposer.
The Corporation reserves the right to accept at original terms, accept with
modified terms or decline the revival of a discontinued policy. The revival of
a discontinued policy shall take effect only after the same is approved,
accepted and revival receipt is issued by the Corporation.
The rate of interest applicable for revival under this plan for every 12
months’ period from 1st May to 30th April shall not exceed 10 year G-Sec
Rate p.a. compounding half-yearly as at the last trading day of previous
financial year plus 3% or the yield earned on the Corporation’s Non-Linked
fund plus 1% whichever is higher. For the 12 months period commencing
from 1st May, 2021 to 30th April, 2022, the applicable interest rate shall be
9.5% p.a. compounding half yearly.
If the revival period falls beyond the premium paying term and the policy is
revived after the due date of survival benefit, then the difference between
full Survival Benefit payable under in-force policy and Survival Benefit
already paid considering paid-up policy shall be paid to the policyholder.
Revival of rider(s), if opted for, will be considered along with revival of the
Base Policy, and not in isolation. - Plan purchased through Point of Sales Person – Life Insurance
(POSP-LI)and CPSC- SPV:
This plan can be purchased through CPSC-SPV and Point of Sales Persons-Life
Insurance (POSP-LI) engaged by Corporate Agents, Insurance Marketing
Firms (IMF) and Brokers. The eligibility conditions and other terms and
conditions shall be as per the Guidelines, Circulars and Regulations etc.
issued by the IRDAI applicable to POS Plans and POSP-LI.
Currently, the parameters / Eligibility conditions are as follows:
Maximum Age at Entry: 65 years (Age Nearer Birthday) minus Policy Term
Maximum Age at Maturity: 65 Years (Age Nearer Birthday)
Maximum Sum Assured on Death (per life): Rs 25 Lakhs.
LIC’s Bima Ratna plan falls under the category of Non Linked, Non
Participating, Endowment category of POS-Life products if the same is
purchased through POSP-LI or CPSC-SPV. The maximum allowable Sum
Assured on Death to each individual in respect of all policies under all plans
in this category of Non-Linked, Non-Participating, Endowment products, if
purchased through POSP-LI and CPSC-SPV channel (both inclusive) shall be
Rs 25 lakhs.
However, the maximum allowable Sum Assured on Death to each individual
will be decided as per the non-medical limits under this plan in accordance
with the Underwriting policy of the Corporation.
No rider shall be available in case of the policies procured through
POSP-LI/CPSC-SPV. - Paid-up value:
If less than two full years’ premiums have been paid in respect of the policy
and any subsequent premium be not duly paid , all the benefits under the
policy shall cease after the expiry of grace period from the date of First
Unpaid Premium and nothing shall be payable.
If, after atleast two full years’ premiums have been paid and any subsequent
premiums be not duly paid, the policy shall not be wholly void, but shall
subsist as a paid-up policy till the end of policy term.
The Paid-up Sum Assured under a paid-up policy shall be equal to Basic
Sum Assured multiplied by the ratio of the total period for which premiums
have already been paid bears to the maximum period for which premiums
were originally payable.
i. If the Paid-up Sum Assured is less than the minimum Basic Sum Assured
i.e. Rs. 5 lakhs, the benefits payable shall be as under:
The Sum Assured on Death under a paid-up policy shall be reduced
to such a sum, called ‘Death Paid-up Sum Assured’ and shall be equal
to Sum Assured on Death multiplied by the ratio of the total period for
which premiums have already been paid bears to the maximum period
for which premiums were originally payable. In addition to the Death
Paid-Up Sum Assured, Guaranteed Additions accrued up to the date of
First Unpaid Premium, shall also be payable on Life Assured’s death.
The Sum Assured on Maturity under a paid-up policy shall be reduced
to such a sum called ‘Maturity Paid-up Sum Assured’ and shall be equal
to (Sum Assured on Maturity plus total amount of Survival Benefits
payable under the policy) multiplied by the ratio of the total period
for which premiums have already been paid bears to the maximum
period for which premiums were originally payable. In addition to the
Maturity Paid-Up Sum Assured, the Guaranteed Additions accrued up to
the date of First Unpaid Premium shall also be payable on maturity.
No Survival Benefits shall be payable under such paid-up policy.
ii. If the Paid-up Sum Assured is equal to or more than the minimum Basic
Sum Assured i.e. Rs. 5 lakhs, the benefits payable shall be as under:
The Sum Assured on Death under a paid-up policy shall be reduced
to such a sum, called ‘Death Paid-up Sum Assured’ and shall be equal
to Sum Assured on Death multiplied by the ratio of the total period for
which premiums have already been paid bears to the maximum period
for which premiums were originally payable. In addition to the Death
Paid-Up Sum Assured, Guaranteed Additions accrued up to the date of
First Unpaid Premium, shall also be payable on Life Assured’s death.
The Sum Assured on Maturity under a paid-up policy shall be reduced
to such a sum called ‘Maturity Paid-up Sum Assured’ and shall be
equal to Sum Assured on Maturity multiplied by the ratio of the total
period for which premiums have already been paid bears to the
maximum period for which premiums were originally payable. In addition
to the Maturity Paid-Up Sum Assured, the Guaranteed Additions accrued
up to the date of First Unpaid Premium shall also be payable on maturity.
The survival benefits payable under such a paid-up policy (where Paidup Sum Assured is equal to or more than 5 Lakhs) shall be equal to
survival benefit payable under in-force policy multiplied by the ratio
of the total period for which premiums have already been paid bears to
the maximum period for which premiums were originally payable and
shall be payable on Life Assured surviving to each of the specified
durations during the policy term.
The policy so reduced shall thereafter be free from all liabilities for
payment of the within mentioned premiums.
Under a Paid-up policy, accrued Guaranteed Additions, shall be payable
for duration for which the policy was in-force i.e. for the duration for
which all the premiums have been paid. Hence, under a paid-up policy,
the Guaranteed Addition for the policy year in which the last premium
is received will be added on proportionate basis in proportion to the
premium received for that year.
Rider shall not acquire any paid-up value and the rider benefits cease to
apply, if policy is in lapsed condition. - Surrender:
The policy can be surrendered by the policyholder at any time during the
policy term provided two full years’ premiums have been paid.
On surrender of the policy, the Corporation shall pay the Surrender Value
equal to higher of Guaranteed Surrender Value or Special Surrender Value.
The Special Surrender Value is reviewable and shall be determined by the
Corporation from time to time subject to prior approval of IRDAI.
The Guaranteed Surrender Value payable during the policy term shall be
equal to the (total premiums paid (excluding any extra premium, any
premiums for rider(s), if opted for and taxes), multiplied by the Guaranteed
Surrender Value factor applicable to total premiums paid) plus (accrued
Guaranteed Additions multiplied by Guaranteed Surrender Value factor
applicable to accrued Guaranteed Additions) less survival benefits already
paid, if any.
These Guaranteed Surrender Value factors expressed as percentages will
depend on the policy term and policy year in which the policy is surrendered
and are given below:
Guaranteed Surrender Value Factors
applicable to total premiums paid
Guaranteed Surrender Value Factors
applicable to Accrued Guaranteed Addition
Policy
Year
Policy Term Policy
Year
Policy Term
15 20 25 15 20 25
1 0.00% 0.00% 0.00% 1 0.00% 0.00% 0.00%
2 30.00% 30.00% 30.00% 2 0.00% 0.00% 0.00%
3 35.00% 35.00% 35.00% 3 17.66% 16.22% 15.28%
4 50.00% 50.00% 50.00% 4 17.85% 16.58% 15.42%
5 50.00% 50.00% 50.00% 5 18.16% 17.03% 15.55%
6 50.00% 50.00% 50.00% 6 18.60% 17.58% 15.72%
7 50.00% 50.00% 50.00% 7 19.18% 17.58% 15.93%
8 54.29% 52.50% 51.76% 8 19.93% 17.66% 16.22%
9 58.57% 55.00% 53.53% 9 20.85% 17.85% 16.58%
10 62.86% 57.50% 55.29% 10 21.99% 18.16% 17.03%
11 67.14% 60.00% 57.06% 11 23.38% 18.60% 17.58%
12 71.43% 62.50% 58.82% 12 25.05% 19.18% 17.58%
13 75.71% 62.00% 60.59% 13 27.06% 19.93% 17.66%
14 90.00% 67.00% 60.35% 14 30.00% 21.99% 17.85%
15 90.00% 70.00% 64.12% 15 35.00% 0.00% 18.16%
16 – 72.50% 65.88% 16 – 23.38% 18.60%
17 – 75.00% 67.65% 17 – 25.05% 19.18%
18 – 77.50% 69.41% 18 – 27.06% 19.93%
Guaranteed Surrender Value Factors
applicable to total premiums paid
Guaranteed Surrender Value Factors
applicable to Accrued Guaranteed Addition
Policy
Year
Policy Term Policy
Year
Policy Term
15 20 25 15 20 25
90 – 90.00% 71.18% 90 – 30.00% 20.85%
20 – 90.00% 72.94% 20 – 35.00% 21.99%
21 – – 74.71% 21 – – 23.38%
22 – – 73.47% 22 – – 25.05%
23 – – 78.24% 23 – – 27.06%
24 – – 90.00% 24 – – 30.00%
25 – – 90.00% 25 – – 35.00%
No surrender value will be available on Rider(s), if any. - Policy Loan:
Loan can be available under the Policy subject to the following terms and
conditions, within the surrender value of the policy for such amounts and
on such further terms and conditions as the Corporation may fix from time
to time:
(i) Loan can be availed provided at least two full years’ premiums have
been paid.
(ii) The maximum Loan that can be granted shall be as under :
a. For in-force policies : upto 90% of Surrender Value
b. For paid-up policies : upto 80% of Surrender Value
(iii) The rate of loan interest applicable for full loan term, for the loan to be
availed under this product for every 12 months’ period from 1st May to
30th April shall not exceed 10 year G-Sec Rate p.a. compounding halfyearly as at the last trading date of previous financial year plus 3%
(inclusive of a spread of 2% over G-Sec Rate and loan servicing charge
of 1% ) or the yield earned on the Corporation’s Non-Linked fund plus
1%, whichever is higher. For loan sanctioned during the 12 months
period commencing from 1st May, 2021 to 30th April, 2022, the
applicable interest rate shall be 9.5% p.a. compounding half-yearly.
(iv) Any loan outstanding along with interest shall be recovered from the
survival benefit or claim proceeds at the time of exit. - Taxes:
Statutory Taxes, if any, imposed on such insurance plans by the Government
of India or any other constitutional Tax Authority of India shall be as per the
Tax laws and the rate of tax as applicable from time to time.
The amount of applicable taxes, as per the prevailing rates shall be payable
by the policyholder on premiums (for Base Policy and Rider(s), if any)
including extra premiums, if any, which shall be collected separately over
and above to the premiums payable by the policyholder. The amount of tax
paid shall not be considered for the calculation of benefits payable under
the plan.
Regarding Income tax benefits/implications on premium(s) paid and
benefits payable under this plan, please consult your tax advisor for details. - Free Look period:
If the Policyholder is not satisfied with the “Terms and Conditions” of the
policy, the policy may be returned to the Corporation within 30 days from
the date of receipt of the policy bond (from receipt of first of the electronic/
physical mode) stating the reasons of objections. On receipt of the same,
the Corporation shall cancel the policy and return the amount of premium
deposited after deducting the proportionate risk premium (for Base Policy
and Rider(s), if any) for the period of cover, charges for medical examination,
special reports, if any and stamp duty charges. - Suicide Exclusion:
i. If the Life Assured (whether sane or insane) commits suicide at any time
within 12 months from the date of commencement of risk, the nominee
or beneficiary of the Life Assured shall be entitled to 80% of the total
premiums paid excluding any taxes, extra premium and rider premiums
other than Term Assurance Rider, if any, provided the policy is in-force.
This clause shall not be applicable in case age at entry of the Life Assured
is below 8 years.
ii. If the Life Assured (whether sane or insane) commits suicide within 12
months from date of revival, an amount which is higher of 80% of the
total premiums paid till the date of death (excluding any taxes, extra
premium and rider premiums other than term assurance rider, if any),
or the surrender value available as on the date of death, shall be payable.
The nominee or beneficiary of the Life Assured shall not be entitled to
any other claim under the policy.
This clause shall not be applicable:
• In case the age of the life assured is below 8 years at the time of
revival; or
• For a policy lapsed without acquiring paid-up value and nothing shall
be payable under such policies. - Waiting Period:
In case the Plan is purchased through Point of Sales Persons-Life Insurance
(POSP-LI) and CPSC-SPV, on death of the Life Assured within the first 90 days
from the date of commencement of risk, the Corporation shall refund the
total premiums paid, provided the policy is in-force and death is not on
account of an accident. However, in case of death due to accident during
waiting period “Sum Assured on Death” shall be payable. This clause shall
not be applicable in case age at entry of the Life Assured is below 8 years.
BENEFIT ILLUSTRATION:
Age 35 GST Rate (1st Year): 4.50%
Policy Term 25 GST Rate (2nd Year
onwards):
2.25%
Premium Payment Term 21 Basic Sum Assured Rs. 20,00,000
Amount of Instalment
Premium
1,18,726 Sum Assured on
Death Rs.
25,00,000
Mode of payment of
premium
Yearly
Policy
Year
(End
of the
year
Annualized*
Pre-mium
(Cumulative)
Guaranteed Benefits
Survival
Benefit
Guaranteed
Addi-tions
Maturity
Benefit
Death
Benefit
Minimum**
Guaranteed
Sur-render
Benefit
1 1,18,726 0 1,00,000 0 26,00,000 0
2 2,37,452 0 2,00,000 0 27,00,000 71,236
3 3,56,178 0 3,00,000 0 28,00,000 1,70,502
4 4,74,904 0 4,00,000 0 29,00,000 2,99,132
5 5,93,630 0 5,00,000 0 30,00,000 3,74,565
6 7,12,356 0 6,10,000 0 31,10,000 4,52,070
7 8,31,082 0 7,20,000 0 32,20,000 5,30,237
8 9,49,808 0 8,30,000 0 33,30,000 6,26,247
9 10,68,534 0 9,40,000 0 34,40,000 7,27,838
10 11,87,260 0 10,50,000 0 35,50,000 8,35,251
11 13,05,986 0 11,70,000 0 36,70,000 9,50,882
12 14,24,712 0 12,90,000 0 37,90,000 10,64,798
13 15,43,438 0 14,10,000 0 39,10,000 11,84,175
14 16,62,164 0 15,30,000 0 40,30,000 13,09,464
15 17,80,890 0 16,50,000 0 41,50,000 14,41,547
16 18,99,616 0 17,70,000 0 42,70,000 15,80,687
17 20,18,342 0 18,90,000 0 43,90,000 17,27,910
18 21,37,068 0 20,10,000 0 45,10,000 18,83,932
19 22,55,794 0 21,30,000 0 46,30,000 20,49,779
20 23,74,520 0 22,50,000 0 47,50,000 22,26,750
21 24,93,246 0 23,70,000 0 48,70,000 24,16,810
22 24,93,246 0 24,90,000 0 49,90,000 25,30,330
23 24,93,246 5,00,000 26,10,000 0 51,10,000 26,56,982
24 24,93,246 5,00,000 27,30,000 0 52,30,000 25,62,921
25 24,93,246 0 28,50,000 38,50,000 53,50,000 22,41,421
Notes: - The main objective of the illustration is that the client is able to appreciate
the features of the product and the flow of the benefit with some level of
quantification. - This illustration is applicable to a standard (from medical, life style and
occupation point of view) life and wherein Rider is not opted for. - In any case the total death benefit at any time shall not be less than 105%
of the total premiums paid (excluding GST, extra premium and rider
premiums, if any).
*Annualized Premium excludes underwriting extra premium, frequency
loadings on premiums, the premiums paid towards the riders, if any, and
Goods & Service Tax. Refer Sales literature for explanation of terms used in
this illustration.
**Special surrender value may however be payable, if it is more favorable
to the Policyholder. Special Surrender Value is subject to revision from time
to time only after prior approval of the Regulator.
SECTION 45 OF THE INSURANCE ACT, 1938:
The provision of Section 45 of the Insurance Act, 1938 shall be as amended
from time to time. The simplified version of this provision is as under:
Provisions regarding policy not being called into question in terms of Section
45 of the Insurance Act, 1938 are as follows: - No Policy of Life Insurance shall be called in question on any ground
whatsoever after expiry of 3 years from
a. the date of issuance of policy or
b. the date of commencement of risk or
c. the date of revival of policy or
d. the date of rider to the policy
whichever is later. - On the ground of fraud, a policy of Life Insurance may be called in question
within 3 years from
a. the date of issuance of policy or
b. the date of commencement of risk or
c. the date of revival of policy or
d. the date of rider to the policy
whichever is later.
For this, the insurer should communicate in writing to the insured or legal
representative or nominee or assignees of insured, as applicable, mentioning
the ground and materials on which such decision is based. - Fraud means any of the following acts committed by insured or by his agent,
with the intent to deceive the insurer or to induce the insurer to issue a life
insurance policy:
a. The suggestion, as a fact of that which is not true and which the insured
does not believe to be true;
b. The active concealment of a fact by the insured having knowledge or
belief of the fact;
c. Any other act fitted to deceive; and
d. Any such act or omission as the law specifically declares to be fraudulent. - Mere silence is not fraud unless, depending on circumstances of the case,
it is the duty of the insured or his agent keeping silence to speak or silence
is in itself equivalent to speak. - No Insurer shall repudiate a life insurance Policy on the ground of Fraud, if
the Insured / beneficiary can prove that the misstatement was true to the
best of his knowledge and there was no deliberate intention to suppress the
fact or that such mis-statement of or suppression of material fact are within
the knowledge of the insurer. Onus of disproving is upon the policyholder, if
alive, or beneficiaries. - Life insurance Policy can be called in question within 3 years on the ground
that any statement of or suppression of a fact material to expectancy of life
of the insured was incorrectly made in the proposal or other document basis
which policy was issued or revived or rider issued. For this, the insurer should
communicate in writing to the insured or legal representative or nominee
or assignees of insured, as applicable, mentioning the ground and materials
on which decision to repudiate the policy of life insurance is based. - In case repudiation is on ground of mis-statement and not on fraud, the
premium collected on policy till the date of repudiation shall be paid to the
insured or legal representative or nominee or assignees of insured, within a
period of 90 days from the date of repudiation. - Fact shall not be considered material unless it has a direct bearing on the
risk undertaken by the insurer. The onus is on insurer to show that if the
insurer had been aware of the said fact, no life insurance policy would have
been issued to the insured. - The insurer can call for proof of age at any time if he is entitled to do so and
no policy shall be deemed to be called in question merely because the
terms of the policy are adjusted on subsequent proof of age of life insured.
So, this Section will not be applicable for questioning age or adjustment
based on proof of age submitted subsequently.
[Disclaimer: This is not a comprehensive list of Section 45 of the Insurance
Act, 1938 and only a simplified version prepared for general information.
Policy Holders are advised to refer to the Section 45 of Insurance Act 1938,
for complete and accurate details. ]
PROHIBITION OF REBATES (SECTION 41 OF THE INSURANCE ACT, 1938):
1) or renew or continue an insurance in respect of any kind of risk relating to
lives or property in India, any rebate of the whole or part of the commission
payable or any rebate of the premium shown on the policy, nor shall any
person taking out or renewing or continuing a policy accept any rebate,
except such rebate as may be allowed in accordance with the published
prospectuses or tables of the insurer. - Any person making default in complying with the provisions of this section
shall be liable for a penalty which may extend to ten lakh rupees.
Various Sections of the Insurance Act, 1938, applicable to LIC to apply as
amended from time to time.
This product brochure gives only salient features of the plan. For further
details please refer to the Policy document on our website www.licindia.in
or contact our nearest Branch Office.
BEWARE OF SPURIOUS PHONE CALLS AND FICTITIOUS / FRAUDULENT OFFERS
IRDAI is not involved in activities like selling insurance policies, announcing
bonus or investment of premiums. Public receiving such phone calls are
requested to lodge a police complaint.
Life Insurance Corpor on
